Home sales in June were reflected in the news. In one month, 150 thousand 509 houses were sold in our country. Of these, 109,899 were second-hand houses. Foreigners bought 8,630. Shelter is as basic a need as food and clothing. However, a big mistake about the construction industry, which produces housing in our country, is deepening. Banks (except public banks) have been around for a very long time. ‘construction companies’ does not give credit. The resources of public banks are also limited. It is believed that construction companies that produce housing are responsible for the sharp rise in housing prices and rents, mainly due to the rapid increase in costs in a short time. Hatred of construction has found such a strong base in society that politics and bureaucracy seem to have long since abandoned neighborhood pressure on this issue. For this reason, with the share of first-hand housing in Turkey’s annual housing market stuck at 30%, a comprehensive support package that will accelerate housing production does not seem likely.

Turks buy housing despite everything

President of the Association of Real Estate Developers and Investors (KONUTDER) Altan Diamondat “The image looks good in June sales. Is the industry recovering? I ask. President Elmas’ response is clear: “As an industry, we continue our journey trusting first in God and then in the Turkish nation. Despite all the attacks on our sector, we are on our feet and the Turkish nation is buying houses despite everything, but in recent years, unfortunately, we cannot produce housing as much as the market needs. Because it is not possible to walk on the gas in production based on these costs and these prices. Sales of first-hand homes rose from 26% to 29% in June. This positive development stems from the granting of suitable loans with a limit of 2 million lire in first-hand housing. Normalization is difficult before the share of first-hand homes in total sales reaches 45-50%. Interestingly, those who constantly produce housing suffocate, this is one of the greatest harms done to citizens. An industry and a profession should not be so discredited. If it continues like this, those who made it will finish their work, and then a new one will not come. All components of the industry, from the builder to the excavator, are constantly discredited. Do we then ask who will produce this basic need?

How is the sale of accommodation to foreigners going?

One of the biggest topics in the demonization of the construction industry is “foreign sales” it is a problem. I also remind President Elmas of this question, “In June, sales to foreigners increased by 81.6%. What’s in the details?” He answers this question as follows: “This subject is also much abused. Until June 13, the “citizenship limit” in home sales to foreigners was $250,000. So, before $400,000, the boom in demand continued until mid-June. In addition, those who started the transaction in the title deed before the deadline were given the opportunity to complete a one-month transaction. Because of this, the reason for the very rapid increase was the last sales before $400,000, the demand was pulled early. Therefore, we see the braking effect of $400,000 as a serious downside to the July numbers. In this case, we will still achieve our annual revenue target of $13 billion, but the rest will be slow. However, it is believed that selling to foreigners is only about citizenship. A third of foreigners who buy a home buy it for citizenship. In this regard, we have worked for years to encourage “the influx of resources into the sector and bring in foreign currency to our country”. Politics and the media scribbled that “real estate agents will be incentivized to open stores overseas, and citizens’ money will be distributed.” The law is passed, but the incentive does not work. As construction and building materials sectors, we brought in over $40 billion in foreign exchange to the country last year. This year, that figure could be $45 billion. Housing production is also very important for the industry that produces for construction. Remember that our industry has also followed many other industrial sectors. Altan DiamondI recall that the citizens of the Russian Federation far stood out in the sale of housing to foreigners in June. diamond“Russians bought 1,887 of the 8,630 homes sold to foreigners in June. 2 thousand 534 of them were sold in Istanbul and 428 in Antalya. “For the Russians, $400,000 is not a lot of money, from now on we can usually see the Russians first.” When he talks so much about overseas sales, he emphasizes one thing: “Even though overseas sales grew rapidly, they only accounted for 5.7% of the market. For this reason, no one in the industry produces housing based on selling housing to foreigners. Our most respected customer is always our own citizen.

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